# Clorox (CLX.US)

Canonical: https://gigainvestors.com/s/CLX

Analysis as of: 2026-10-16T07:27:29.648Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $86.20 per share; close as of 2026-10-15.

Estimated value: low $37.29 per share, central $42.42 per share, high $49.25 per share. Buy at or below the central value $42.42 per share. Valuation as of 2026-10-16T07:27:29.648Z; scenarios are not confidence intervals.

Expected annual return: 6.4% at the stated quote. About 6.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.19×

- FY2018: 0.18×

- FY2019: 0.18×

- FY2020: 0.19×

- FY2021: 0.17×

- FY2022: 0.10×

- FY2023: 0.11×

- FY2024: 0.10×

- FY2025: 0.17×

- FY2026: 0.25×

### moat: pass

- ROIC, median of available years: 53.7%

- ROIC, second-lowest year: 29.5%

- Typical minus recent gross margin: 1.3 pp

- Typical gross margin (annual median): 43.6%

- Recent gross margin (lower of latest and 3-year median): 42.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 22.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 67.7%

- FY2018: 59.5%

- FY2019: 57.6%

- FY2020: 63.2%

- FY2021: 58.1%

- FY2022: 29.1%

- FY2023: 36.5%

- FY2024: 29.5%

- FY2025: 49.8%

- FY2026: 35.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.3B

- Net income, five-year total: $2.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -5.6 pp

- Working capital / revenue, final three-year average: 4.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.94×

- FY2023: 1.05×

- FY2024: 1.08×

- FY2025: 1.00×

- FY2026: 1.07×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 59.5% vs 35.9%

- Per-share earnings: 5.33 to 4.81 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: -$5.5B

- Cumulative retained earnings: -$2.1B

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -1.3%

- Per-share value change: -$0.52

- Per-share value, starting three-year median: $5.33

- Per-share value, ending three-year median: $4.81

- Buybacks concentrated in cheaper years (correlation): 0.36

- Average buyback yield: 2.0%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.4B

- Cumulative net income, 10 years: $6.3B

- ROIC, first three-year median: 59.5%

- ROIC, last three-year median: 35.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: $5.33

- FY2018: $6.25

- FY2019: $6.32

- FY2020: $7.35

- FY2021: $5.58

- FY2022: $3.73

- FY2023: $1.20

- FY2024: $2.24

- FY2025: $6.52

- FY2026: $4.81

### accounting: pass

- Sloan accruals: -0.3%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 7.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.04×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 28.34×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.7%

- FY2018: -3.0%

- FY2019: -3.4%

- FY2020: -9.8%

- FY2021: -8.9%

- FY2022: -5.3%

- FY2023: -17.0%

- FY2024: -7.2%

- FY2025: -3.1%

- FY2026: -0.3%

## Holders

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mark Hillman](https://gigainvestors.com/HCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 51% since Dec 2021 · "CLX Q4 Earnings Call Flags Inflation as Share Recovery Builds" (finance.yahoo.com, Aug 2026) · sales -5.4%

Story as of 2026-10-16T09:58:31.102Z; price observation 2026-10-15.

Price needs cash profits to grow 9.8% a year for ten years

- 2025-05-05: Clorox cuts annual sales forecast as consumer demand weakens amid economic uncertainty ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/clorox-cuts-annual-sales-forecast-202035921.html))

- 2025-07-31: Clorox issues disappointing annual forecasts on bleach maker's system upgrade ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/clorox-issues-disappointing-annual-forecasts-201510873.html))

- 2025-11-12: How Investors Are Reacting To Clorox (CLX) Weak Sales and Reaffirmed Cautious Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/investors-reacting-clorox-clx-weak-191535610.html))

- 2026-01-30: Clorox's Sluggish Consumption Trends to Be Partially Offset by New Product Launch, Says RBC ([finance.yahoo.com](https://finance.yahoo.com/news/clorox-apos-sluggish-consumption-trends-200228634.html))

- 2026-02-04: Clorox outlines 0–1% category growth target and innovation-led recovery as ERP transition ends ([seekingalpha.com](https://seekingalpha.com/news/4546770-clorox-outlines-0-1-percent-category-growth-target-and-innovation-led-recovery-as-erp?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-24: Clorox (CLX) Valuation Check As Investigation And Margin Outlook Reset Shake Investor Confidence ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/clorox-clx-valuation-check-investigation-211559475.html))

### Sales · FY2025–2026

sales -5.4%; source https://www.sec.gov/Archives/edgar/data/21076/000002107626000034/clx-20260630.htm; observed 2026-08-07.

- FY2017: $6.0B 

- FY2018: $6.1B 

- FY2019: $6.2B 

- FY2020: $6.7B 

- FY2021: $7.3B 

- FY2022: $7.1B 

- FY2023: $7.4B 

- FY2024: $7.1B 

- FY2025: $7.1B 

- FY2026: $6.7B 

### Gross margin · FY2026

gross margin 42.3%; source https://www.sec.gov/Archives/edgar/data/21076/000002107626000034/clx-20260630.htm; observed 2026-08-07.

- FY2017: 44.7% 

- FY2018: 43.7% 

- FY2019: 43.9% 

- FY2020: 45.6% 

- FY2021: 43.6% 

- FY2022: 35.8% 

- FY2023: 39.4% 

- FY2024: 43.0% 

- FY2025: 45.2% 

- FY2026: 42.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in household & personal products; annual sales are USD 6.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/21076/000002107626000034/clx-20260630.htm (filed 2026-08-07); FY2026: revenue 6720000000; grossProfit 2844000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CLX.US: The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The company home care cleaning and disinfecting products and laundry additives, skin sanitization and cleaning products, professional cleaning and disinfecting products, and professional food service products under the Clorox, Clorox2, Pine-Sol, Scentiva, Tilex, Liquid-Plumr, Formula 409, Purell, GOJO, CloroxPro, Clorox Healthcare, Hidden Valley, Poett, Clorinda, and Chux brands. It also provides bags and wraps, cat litter, and grilling products under the Glad, Fresh Step, Scoop Away, Kingsford, and Ever Clean brands; and dressings, dips, seasonings, sauces, water-filtration products, and natural personal care products under the Brita and Burt's Bees brands. The company sells its products through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet, and military stores; third-party and owned e-commerce channels; distributors; and other retail outlets through direct sales force. The company was founded in 1913 and is headquartered in Oakland, California.

### Why customers stay

Margins ranged from 42.3% to 45.2% during 2024–26; it earns 53.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2024: grossProfit / revenue = 43%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2025: grossProfit / revenue = 45.2%.

- Source: https://www.sec.gov/Archives/edgar/data/21076/000002107626000034/clx-20260630.htm (filed 2026-08-07); FY2026: grossProfit / revenue = 42.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); 10-year return on capital observations [[2017,0.6769060883972282],[2018,0.5951485629657055],[2019,0.5756265219155844],[2020,0.63161996511386],[2021,0.5814847824651745],[2022,0.29087909048586785],[2023,0.36507232401157186],[2024,0.29452649142436227],[2025,0.49843405506246824],[2026,0.3585416859602384]]; median 0.5370302884890263. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 256 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2017: growth capex 35496482.4230907; upkeep 195503517.5769093; owner earnings 668496482.4230907. Growth capex / owner earnings = 0.05309898160485011.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2018: growth capex 24621782.12646699; upkeep 169378217.873533; owner earnings 819621782.126467. Growth capex / owner earnings = 0.030040419451258394.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2019: growth capex 14481070.336800277; upkeep 191518929.66319972; owner earnings 808481070.3368003. Growth capex / owner earnings = 0.01791145255975838.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2020: growth capex 74000000; upkeep 180000000; owner earnings 939000000. Growth capex / owner earnings = 0.07880724174653887.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2021: growth capex 113447651.6770235; upkeep 217552348.3229765; owner earnings 703447651.6770235. Growth capex / owner earnings = 0.1612737655837838.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2022: growth capex 0; upkeep 251000000; owner earnings 435515923.566879. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2023: growth capex 0; upkeep 228000000; owner earnings 156403726.70807454. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2024: growth capex 0; upkeep 212000000; owner earnings 302054794.5205479. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); FY2025: growth capex 1000000; upkeep 219000000; owner earnings 810000000. Growth capex / owner earnings = 0.0012345679012345679.

- Source: https://www.sec.gov/Archives/edgar/data/21076/000002107626000034/clx-20260630.htm (filed 2026-08-07); FY2026: growth capex 0; upkeep 207000000; owner earnings 626068219.6339434. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); Dividend observations: [[2017,412000000],[2018,450000000],[2019,490000000],[2020,533000000],[2021,558000000],[2022,571000000],[2023,583000000],[2024,595000000],[2025,602000000],[2026,602000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/21076/000002107626000034/clx-20260630.htm (filed 2026-08-07); FY2026: cash repurchases 256000000 USD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CLX.US SharesStats.PercentInsiders = 0.692 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.8% yearly over ten years; actual growth was 0.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-07); Ten-year compound average after fade. Initial solved rate 0.12832260525159234. Price 86.2; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 4.919638315479399 → FY2026 5.126160380849765. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $120.02 per share

- 2016-11: $115.56 per share

- 2016-12: $120.02 per share

- 2017-01: $120.00 per share

- 2017-02: $136.81 per share

- 2017-03: $134.83 per share

- 2017-04: $133.69 per share

- 2017-05: $135.73 per share

- 2017-06: $133.24 per share

- 2017-07: $133.49 per share

- 2017-08: $138.53 per share

- 2017-09: $131.91 per share

- 2017-10: $126.53 per share

- 2017-11: $139.29 per share

- 2017-12: $148.74 per share

- 2018-01: $141.69 per share

- 2018-02: $129.08 per share

- 2018-03: $133.11 per share

- 2018-04: $117.20 per share

- 2018-05: $120.83 per share

- 2018-06: $135.25 per share

- 2018-07: $135.17 per share

- 2018-08: $144.98 per share

- 2018-09: $150.41 per share

- 2018-10: $148.45 per share

- 2018-11: $165.62 per share

- 2018-12: $154.14 per share

- 2019-01: $148.38 per share

- 2019-02: $158.03 per share

- 2019-03: $160.46 per share

- 2019-04: $159.73 per share

- 2019-05: $148.81 per share

- 2019-06: $153.11 per share

- 2019-07: $162.60 per share

- 2019-08: $158.16 per share

- 2019-09: $151.87 per share

- 2019-10: $147.69 per share

- 2019-11: $148.23 per share

- 2019-12: $153.54 per share

- 2020-01: $157.31 per share

- 2020-02: $159.42 per share

- 2020-03: $173.25 per share

- 2020-04: $186.44 per share

- 2020-05: $206.25 per share

- 2020-06: $219.37 per share

- 2020-07: $236.51 per share

- 2020-08: $223.50 per share

- 2020-09: $210.17 per share

- 2020-10: $207.25 per share

- 2020-11: $202.96 per share

- 2020-12: $201.92 per share

- 2021-01: $209.46 per share

- 2021-02: $181.05 per share

- 2021-03: $192.88 per share

- 2021-04: $182.50 per share

- 2021-05: $176.73 per share

- 2021-06: $179.91 per share

- 2021-07: $180.89 per share

- 2021-08: $168.05 per share

- 2021-09: $165.61 per share

- 2021-10: $163.01 per share

- 2021-11: $162.85 per share

- 2021-12: $174.36 per share

- 2022-01: $167.86 per share

- 2022-02: $145.79 per share

- 2022-03: $139.03 per share

- 2022-04: $143.47 per share

- 2022-05: $145.36 per share

- 2022-06: $140.98 per share

- 2022-07: $141.84 per share

- 2022-08: $144.34 per share

- 2022-09: $128.39 per share

- 2022-10: $146.04 per share

- 2022-11: $148.65 per share

- 2022-12: $140.33 per share

- 2023-01: $144.69 per share

- 2023-02: $155.44 per share

- 2023-03: $158.24 per share

- 2023-04: $165.62 per share

- 2023-05: $158.18 per share

- 2023-06: $159.04 per share

- 2023-07: $151.48 per share

- 2023-08: $156.45 per share

- 2023-09: $131.06 per share

- 2023-10: $117.70 per share

- 2023-11: $143.35 per share

- 2023-12: $142.59 per share

- 2024-01: $145.25 per share

- 2024-02: $153.31 per share

- 2024-03: $153.11 per share

- 2024-04: $147.87 per share

- 2024-05: $131.56 per share

- 2024-06: $136.47 per share

- 2024-07: $131.93 per share

- 2024-08: $158.31 per share

- 2024-09: $162.91 per share

- 2024-10: $158.55 per share

- 2024-11: $167.17 per share

- 2024-12: $162.41 per share

- 2025-01: $158.68 per share

- 2025-02: $156.39 per share

- 2025-03: $147.25 per share

- 2025-04: $142.30 per share

- 2025-05: $131.88 per share

- 2025-06: $120.07 per share

- 2025-07: $125.56 per share

- 2025-08: $118.20 per share

- 2025-09: $123.30 per share

- 2025-10: $112.46 per share

- 2025-11: $107.94 per share

- 2025-12: $100.83 per share

- 2026-01: $112.79 per share

- 2026-02: $127.16 per share

- 2026-03: $103.63 per share

- 2026-04: $96.44 per share

- 2026-05: $90.02 per share

- 2026-06: $95.44 per share

- 2026-07: $95.53 per share

- 2026-08: $97.68 per share

- 2026-09: $81.01 per share

- 2026-10: $86.20 per share

## Annual estimated value (USD per share)

- FY2017: low $62.64 per share, central $75.15 per share, high $87.27 per share

- FY2018: low $68.02 per share, central $89.06 per share, high $104.22 per share

- FY2019: low $68.49 per share, central $87.40 per share, high $102.18 per share

- FY2020: low $95.56 per share, central $123.96 per share, high $144.13 per share

- FY2021: low $99.30 per share, central $130.41 per share, high $152.50 per share

- FY2022: low $81.89 per share, central $93.14 per share, high $108.11 per share

- FY2023: low $63.96 per share, central $72.55 per share, high $83.99 per share

- FY2024: low $38.53 per share, central $43.78 per share, high $50.76 per share

- FY2025: low $38.48 per share, central $43.76 per share, high $50.79 per share

- FY2026: low $36.92 per share, central $42.00 per share, high $48.77 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/21076/000002107626000034/clx-20260630.htm); period 2026-06-30, filed 2026-08-07.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.